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European governments setting up an Integrated European Defense Market

04 February 2009 10:06 (UTC +04:00)

Baku. Rashad Suleymanov â€“ APA-Economics. The European Parliament took a giant step toward its goal of creating a common market for defence goods among the 27-nation European Union with its approving of a first-reading Directive on Defence and Security Procurement on January 14, 2009.
The directive is expected to push the movement towards a genuine European defence equipment market (EDEM) and to create a more open, intra-national defence competition. It is believed the directive will be approved by EU members as an â€˜Aâ€™ point - without discussion - during the Competitiveness Council in March.
The European Union (EU) already has a consolidated economic market, free of trade barriers. However, European nations seldom sign agreements with companies from other EU nations to manufacture their defence equipment, preferring to support their national high-tech and defence companies. Last year, only 13 percent of the tenders for defence contracts announced by EU member states were open to bids from foreign countries.
Dr Wolfram Schwetzel of Germanyâ€™s CMS Hasche Sigle, told APA-Economics that the directive will improve the member statesâ€™ access to defence goods.
According to him, the directive will also simplify national procedures for the licensing of transfers of defence goods, services and information to other EU countries.
Thus, it will facilitate cross-border movements of sensitive goods and technologies to governments as well as certified companies.